LIPP Participant Contributions
This scale is effective as of July 1, 2007.
Participants allocate, according to the following Participant Contribution formula, a limited percentage of their earnings toward their total annual education loan repayment. LIPP covers any difference between the graduate's total eligible law school debt payments due in that year and their expected contribution toward eligible loan payments.
It is the policy of the LIPP program to consider income from all sources when calculating the Participant Contribution. This includes income from all employment, housing allowances, living allowances, subsistence allowances, bonuses, settlements, alimony, child support and rental income. In regards to bonuses and settlements, the gross amount is added to the annual income of the participant and used to calculate the LIPP income for the six months following its disbursement.
For those participants who are paid via an hourly wage and who do not receive paid vacations, such as temporary workers, we use a 48 week year to determine an annual income. We do this to account for the two weeks of holidays businesses are generally closed and to allow for a reasonable two weeks of vacation per year.
When calculating a participant's LIPP income, we also include several allowances. These allowances include dependent care costs and out of pocket health care expenses. Additionally, we apply a Longevity Allowance to recognize longer term participants. The Longevity Allowance begins in the fifth year of program participation, at which point participants will receive a $5,000 allowance to their income. In the sixth year participants receive a $6,000 allowance, and so forth.
| 2008-2009 LIPP Participant Contribution Guidelines | |
| Gross Income |
Portion of Annual Income Graduate Pays Towards Loans Before LIPP Assistance Begins* |
| $42,000 or less $42,001-$48,000 $48,001 and above |
none 20% over $42,000 $1,200 + 40% over $48,000 |
*The monthly expected contribution cannot be applied to “non-LIPP” or LIPP-ineligible loan payments.
LIPP assistance is provided twice annually, with each award cycle covering the participant’s expected eligibility for the upcoming six months. Participants must report changes in income, job, or other financial circumstances to the LIPP staff promptly; LIPP awards will be adjusted accordingly.
LIPP six-month awards are calculated on a monthly basis to most accurately reflect any anticipated changes in income, monthly loan payment amounts, employment status and family size reported on the application for each award cycle. There is no LIPP coverage for periods of unemployment.
LIPP assistance is solely and specifically intended to be used to repay eligible education loans.
Income Scale
This chart shows, in thousand-dollar increments, the expected contribution participants make toward their LIPP-eligible loan payments based on their income and the LIPP Participant Contribution Guidelines. The monthly contribution amount is subtracted from the participant's total eligible monthly loan payment amount to determine the monthly LIPP subsidy.
| Income | Annual Expected Contribution | Monthly Expected Contribution |
|
$42,000 $43,000 $44,000 $45,000 $46,000 $47,000 $48,000 $49,000 $50,000 $51,000 $52,000 $53,000 $54,000 $55,000 $56,000 $57,000 $58,000 $59,000 $60,000 $61,000 $62,000 $63,000 $64,000 $65,000 $66,000 $67,000 $68,000 $69,000 $70,000 $71,000 $72,000 $73,000 $74,000 $75,000 $76,000 $77,000 $78,000 $79,000 $80,000 $81,000 $82,000 $83,000 $84,000 $85,000 |
$0 $200 $400 $600 $800 $1,000 $1,200 $1,600 $2,000 $2,400 $2,800 $3,200 $3,600 $4,000 $4,400 $4,800 $5,200 $5,600 $6,000 $6,400 $6,800 $7,200 $7,600 $8,000 $8,400 $8,800 $9,200 $9,600 $10,000 $10,400 $10,800 $11,200 $11,600 $12,000 $12,400 $12,800 $13,200 $13,600 $14,000 $14,400 $14,800 $15,200 $15,600 $16,000 |
$0.00 $16.67 $33.33 $50.00 $66.67 $83.33 $100.00 $133.33 $166.67 $200.00 $233.33 $266.67 $300.00 $333.33 $366.67 $400.00 $433.33 $466.67 $500.00 $533.33 $566.67 $600.00 $633.33 $666.67 $700.00 $733.33 $766.67 $800.00 $833.33 $866.67 $900.00 $933.33 $966.67 $1,000.00 $1,033.33 $1,066.67 $1,100.00 $1,133.33 $1,166.67 $1,200.00 $1,233.33 $1,266.67 $1,300.00 $1,333.33 |
Note: LIPP has no set income ceiling. Graduates with high debt can qualify for LIPP assistance at incomes above $85,000.